UBS: Asian billionaires are shifting from the US dollar to Crypto Assets, gold, and the Chinese market.

Source: Cointelegraph Original text: "UBS: Asian billionaires are shifting from the US dollar to cryptocurrencies, gold, and the Chinese market"

According to a report by financial services giant UBS Group, high-net-worth clients across Asia are gradually shifting from dollar-based investments to a preference for gold, cryptocurrencies, and Chinese assets.

"Gold has become very popular," said Amy Lo, co-head of Asia Wealth Management at UBS, at the Bloomberg New Voices event held in Hong Kong on May 13.

She pointed out that rising geopolitical uncertainty and ongoing market volatility are the main factors contributing to this shift. Investors, traditionally focused on U.S. central assets, are now seeking a broader exposure to alternative asset classes such as cryptocurrencies, commodities, and other currencies.

Amy Lo stated that "volatility will undoubtedly persist," which prompts clients to rebalance their portfolios and shift towards assets considered safe havens and new regional growth opportunities.

The Chinese market is regaining the favor of ultra-high-net-worth individuals after years of low attention. Amy Lo pointed out that clients who previously avoided the Chinese market are now proactively inquiring about investment opportunities.

The Hong Kong benchmark index (primarily composed of Chinese enterprises) has become one of the best-performing indices globally in 2024, further stimulating investment interest.

The latest Bank of America fund manager survey also shows that global fund managers significantly reduced their exposure to the US dollar in May, marking the largest underweight position in 19 years.

Christina Au-Yeung, head of Asia Private Wealth Management Investment Services at Morgan Stanley, revealed to Bloomberg that the recent truce in tariffs between the U.S. and China has created a new sense of optimism among investors.

"We are seeing truly interesting investment themes in the Chinese market re-emerging," she said.

Christina also pointed out that the risk awareness of the wealthiest clients in Asia is increasingly growing. The company currently recommends a balanced portfolio allocation, including 40% fixed income, 40% equities, 15% alternative investments, with the remainder in cash or equivalents.

On May 11, the United States and China announced an agreement to temporarily reduce tariffs on each other's goods. Under the agreement, the United States will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on American goods from 125% to 10%.

In a recent report, Galaxy Digital analysts stated that Bitcoin is increasingly being viewed as a digital value storage tool, and pointed out that interest from institutions, exchange-traded funds (ETFs), and even governments is continuously growing.

"The supply and demand dynamics of Bitcoin are reinforcing its position as a mature digital store of value," said Ian Kolman, co-portfolio manager at Galaxy.

Supporting this view, Jay Jacobs, head of BlackRock's thematic and active ETFs, pointed out on April 25 that countries are increasingly diversifying away from dollar reserves, turning to assets like gold — now also including Bitcoin (BTC) — as part of a broader shift in reserve strategy.

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